Callon Petroleum climbs after APA Corp's buyout offer

Callon Petroleum Co

04/01/2024 13:03

(Updates)
    ** Shares of oil firm Callon Petroleum  CPE.N  rise ~6% to
$35.49, while APA  APA.O  drops 4.7% to $35.03 premarket
    ** APA Corp offers to buy Callon in an all-stock deal
valuing each Callon share at $38.31 based on APA's last close,
with the deal valued at $4.5 bln including debt
        ** Callon's assets expected to increase APA's acreage in
the Permian basin in Texas and New Mexico by 50%
  
    ** Deal expected to close by Q2
        ** "Don't think the market will embrace this transaction
given the premium paid, slight increase in leverage and concerns
about CPE asset quality" - analyst Leo Mariani, Roth MKM
  
        ** CPE fell 6.52% in 2023, while APA dropped 17.74% in
the previous year
  
    

 (Reporting by Kabir Dweit)
 ((Kabir.Dweit@thomsonreuters.com))